My Favorite Stock to Buy Right Now -- and Yes, of Course It's Nvidia Stock (NVDA)

Core Viewpoint - Nvidia is considered a strong investment opportunity due to its impressive past performance and significant future growth potential [1][2]. Company Performance - Nvidia's stock has shown an average annual growth rate of approximately 76% over the past decade and 146% over the last three years, with a year-to-date increase of 51% [1]. - The stock recently reached a market capitalization of $5 trillion before dropping below that mark [1]. Financial Metrics - The current forward-looking price-to-earnings (P/E) ratio is 31.5, which is below its five-year average of 38.5 [2]. - The price-to-sales ratio stands at 30.2, significantly higher than the five-year average of 23.8, indicating a steep valuation [2]. Market Position and Orders - Nvidia has transitioned from a gaming chip company to a key player in the artificial intelligence (AI) sector, producing graphics processing units (GPUs) for data centers [4]. - The company has secured $500 billion in orders for its Blackwell and Rubin chips through 2026, which is substantially higher than its total revenue of $165 billion over the past year [4]. Competitive Landscape - Nvidia consistently exceeds market expectations and demonstrates adaptability to capitalize on emerging opportunities [5]. - While there is competition from major tech customers developing in-house chips and software, Nvidia is still viewed as a strong long-term investment [6].